Glencore posts some decent first-half production numbers

Glencore issued its half-year production results on Tuesday, reporting that its own-sourced copper production of 696,200 tonnes was 53,300 tonnes or 8% higher year-on-year, with cobalt production of 16,700 tonnes being 4,000 tonnes or 31% higher.

The FTSE 100 company said that in each case, that reflected the restart and ramp-up of Katanga.

Own-source copper sales during the period were some 32,000 tonnes lower, which the board put down to the timing of shipments.

Adjusting for the African zinc assets sold to Trevali Mining in August last year, Glencore said own-sourced zinc production of 498,200 tonnes was in line with the first half of 2017.

“Mining operations have restarted at Lady Loretta (Mount Isa), supporting an increased full year production run-rate,” the board said in its statement.

Own-sourced nickel production of 62,200 tonnes was 11,000 tonnes, or 21%, higher than a year ago, which reportedly reflected Koniambo's second processing line entering production, and the scheduled statutory shutdown at Murrin in the base period.

Attributable ferrochrome production was 818,000 tonnes, which was said to be in line with the first half of 2017.

Coal production of 62.0 million tonnes was in line with last year, which reflected “certain offsetting factors”, the board said.

“Cyclone Debbie in Australia disrupted the base period, the current period includes production from the recently acquired Hunter Valley Operations joint venture from May 2018.

“As previously indicated, Prodeco is undertaking significant additional overburden removal, affecting nearby production volumes.”

Entitlement interest oil production of 2.3 million barrels was 13% below last year’s comparative period, which primarily reflected expected declines in the liquids phase of the Equatorial Guinea offshore fields.

The Chad drilling campaign that started mid-2017 delivered increased production of 9% over the second half of 2017, and was stable over the first half of 2017.